Setup Taxes

Sales tax and tire tax are calculated on the repair order. You can set your tax rates here to be applied to the repair order, but can modify on each repair order if necessary.  

To Get Started:

1. Click the Shop Settings section on the bottom of the left menu bar.
2. Click the 2nd tab, RO Settings.
3. RO Settings table - This table is where you setup most information regarding your repair order and estimates. It is where you set up your labor rates, shop fees, discounts, taxes, job categories, other payments, and advanced settings.
4. Click Taxes to set up the sales tax and tire tax.

Sales Tax

1. Type in your Sales Tax rate for your state/province.
   1. If your state/province has a sales tax cap, then you can enable the cap feature to cap your sales amount at a certain dollar.
      1. Please note: Once you enable the sales tax cap, all active repair orders will have their tax amount updated. 
2. Tekmetric uses your shop's ZIP code to suggest what sales tax rate is applicable.
3. You can check the desired box(es) depending on whether you want sales tax to be applied to labor, parts, fees, or a combination.
   • You can always turn sales tax on/off for each job as needed.
   • Changes made to sales tax settings do not update any existing repair orders.
   • Canned Jobs can be setup to have different sales tax applications from what you have set up here, in Shop Settings.
4. You will need to ensure your tax settings comply with all local, state and federal requirements and regulations.

Note: Tax changes made in Shop Settings do not automatically update tax settings on canned jobs. For bulk updating canned job taxes, click here.

Tire Tax

Depending on your State, choose which tire tax fits best:

• No Tire Tax - select option stating "Do not charge tax on tires."
• Flat Rate Tax - select "Charge flat rate tax on tires" and specify the tax amount in the Tax per tire field. This will automatically be applied to all tire part types on a repair order.
• Tire Diameter Based Tax 
  • Set your range for diameters and set the Tax Rate.
  • To add a diameter range, click the Add Range button.
  • To remove a diameter range, click the X icon.

• Percentage-Based Tax

  • New! Select the “Percentage-based with cap” option.

  • Enter the percentage rate (e.g., 2%).

  • Enter the maximum amount to charge per tire (e.g., $4.66).

• Once you set your Sales and Tire Tax settings, click the Save Tax Rates button.

Note: These tire taxes are similar to fees and does not prevent tires from having sales tax applied. Tire sales will still have sales tax applied plus any additional tire taxes and/or fees setup in Shop Settings. 

If your state/province has dual tax rates, please review our dual tax rate article on a how to set it up.